Muscat: The free trade agreement (FTA) established between Oman and the United States, which took effect in 2009, plays a vital role in enhancing commercial and investment collaboration between the two nations, facilitating the entry of Omani goods into the American market.
Officials from both the governmental and private sectors in Oman and the United States have reiterated that discussions are underway with U. S. counterparts regarding the customs duties imposed on Omani products as part of the FTA, seeking a reassessment of these export fees from Oman.
Pankaj Khimji, an Advisor in Foreign Trade and International Cooperation at the Ministry of Commerce, Industry and Investment Promotion, has expressed that both parties are interested in strengthening trade relations to ensure ongoing development, a partnership that extends back more than 200 years.
He encouraged American investors and entrepreneurs to collaborate with their Omani peers in identifying trade and investment possibilities and in creating joint projects and ventures.
He emphasized the importance of maintaining open communication regarding any potential discrepancies, as Oman aspires for a stable bilateral trade relationship that bolsters its economy and fosters growth opportunities beneficial to both nations.
Khimji also highlighted the need for discussions about the effects of the 10% customs tariffs. In 2024, Omani exports to the U. S. were valued at over OMR463 million, while imports from the U. S. surpassed OMR506 million.
Ana Escrogima, the U. S. Ambassador to Oman, noted that the FTA is not merely a trade tool but a strategic resource that requires ongoing renewal and expansion.
She also mentioned that American investments in Oman have exceeded $16 billion by the end of the third quarter of 2024, making the U. S. the second-largest investor in the country.
Khalid Al Shuaibi, who leads the National Program for Private Sector and Foreign Trade Development (Nazdaher), stated that the FTA between Oman and the United States has not been significantly impacted by the 10% customs tariffs, as Oman’s access to the U. S. market remains superior compared to countries without trade agreements.
Negotiations with the United States are currently underway to reconsider these tariffs, given that Oman has no trade surplus with the U. S. , and American products can easily enter Oman without tariffs.
Saud bin Ahmed Al Nahari, a Board Member of the Oman Chamber of Commerce and Industry (OCCI), indicated that the joint committee overseeing the FTA has concentrated on reviewing the agreement and assessing its implications for the private sector related to the customs fees affecting Omani exports.
He also noted that next month, a group representing OCCI would engage in an expo focused on selecting the US market. This event aims to familiarize participants with the trade and investment prospects that the US market offers, as well as to display the investment potentials found in the Sultanate of Oman.
